Arrival, a UK-based electric vehicle (EV) manufacturer, and Kensington Capital Acquisition have entered into a definitive agreement for a business combination. Upon completion of the transaction, the combined company will continue to be called Arrival.
According to a release, the companies will work together to bring Arrival’s XL Van to market and invest in the production of the vehicle at its North Carolina factory. Arrival’s in-house design and manufacturing method aims to streamline integration, significantly reduce the time from concept to market, and create a superior user experience.
“This transaction offers a potentially significant capital infusion and additional support in bringing our XL Van to market,” said Igor Torgov, CEO of Arrival.
Looking at Arrival’s Van Offerings
In the first half of 2023, Arrival continued to build certified L Vans at its Bicester, United Kingdom factory, enabling the Company to develop its automated factory processes further and integrate its autonomous mobile robots.
The Company has sharpened its focus on its U.S. product strategy in recent months. It plans to invest the expected proceeds from the transaction in producing its XL Van at its Charlotte, North Carolina, factory. The start of production in Charlotte is targeted for late 2024. The XL Van is purpose-built to target the high-margin, last-mile delivery market, which Arrival believes is currently underserved by large-scale OEMs.
The L Vans are expected to accumulate 250,000 kilometers of public road mileage by the end of 2023 as they are used to validate Arrival’s engineering designs and components.